UPDATE 3-Peppa Pig-owner Entertainment One rejects ITV's 1 bln-pound offer
* British broadcaster offers 236 pence a share
* Entertainment One says approach undervalues company
* Deal would bolster ITV's TV production, add film distribution (Adds investor comments)
By Paul Sandle
LONDON, Aug 10 (Reuters) - Canada's Entertainment One , the owner of children's TV character Peppa Pig, has rejected a 1 billion-pound ($1.3 billion) takeover offer from British broadcaster ITV, saying it undervalued the production and distribution company.
Starting life as a Canadian record and tape retailer, eOne now has a place on the London Stock Exchange, boasting a library of rights including more than 40,000 film and television titles, 4,500 hours of television programming and 45,000 music tracks.
The group, which acquired the European licensing rights for the DreamWorks Studios film of Roald Dahl's children's book "The BFG", says its rights alone were independently valued at over $1 billion last year.
"The board of eOne has reviewed the proposal and has unanimously rejected it on the basis that it fundamentally undervalues the company and its prospects," it said.
ITV, Britain's biggest free-to-air commercial broadcaster, has been buying up production companies, particularly in the drama and reality TV genres, to reduce its reliance on UK TV advertising sales. Continued...